It is believed that the scheme occurred for almost three years.
The notorious Bitcoin heist of Mt. Gox, once a prominent cryptocurrency exchange, has been pinned on two individuals by the US Department of Justice.
Alexey Bilyuchenko, 43, and Aleksandr Verner, 29, are alleged to have coordinated the theft and subsequent laundering of a massive amount of 647,000 Bitcoin (BTC) worth around $400 million.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is Decentralized Crypto Gambling? (Animated Explainer)
Under suspicion, Bilyuchenko faces an additional charge for his suspected involvement in operating the now-defunct BTC-e exchange. The platform was suspended in 2017 due to accusations liked to money laundering.
The charge sheet details a systematic and prolonged attack orchestrated from September 2011 until May 2014. It alleges that the pair infiltrated and controlled an Mt. Gox server in Japan.
The two men are believed to have siphoned off Bitcoin from Mt. Gox to their own wallets, gradually depleting a large share of the crypto exchange's customer Bitcoin holdings.
Following the alleged theft, the duo is suspected to have sought to offload the Bitcoin through a crypto exchange under their control. As a part of their supposed scheme, they are said to have engaged in a sham contract with a Bitcoin brokerage firm based in New York.
This firm is reported to have unknowingly purchased the stolen Bitcoin from the exploiters, paying through wire transfers sent to several offshore bank accounts. However, Bitcoin remained under the control of the accused within their crypto exchange, though it was credited to the account of the brokerage firm within.
The official announcement did not disclose the name of the crypto exchange, referring to it as "Exchange-1." Authorities estimate that the suspects pocketed approximately $6.6 million from this transaction.
The fall of Mt. Gox came in March 2014 when it filed for bankruptcy. The move came as a result of the hack, which pushed the crypto exchange into insolvency.
